Long-duration private debt can be used for hedging liabilities, and other alternative investments may be used for enhancing risk-adjusted returns, a report from Cerulli Associates explains.
Tag: defined contribution plans
A research report argues that even defined contribution (DC) plan participants in plans with a default investment do not have the financial acumen to know whether the default is right for them or whether they should opt out.
PLANSPONSOR’s 2018 Defined Contribution Survey found many start-up plans have not yet adopted plan design best practices and many are unsure about fees, but fortunately, nearly two-thirds employ the services of a retirement plan adviser or institutional investment consultant.
IFEBP looks at how emotional, social and cognitive factors can be used to help participants better prepare for retirement and suggests 10 ways sponsors can employ behavioral finance in their retirement plan.
Cerulli believes managed accounts will continue to gather assets as a customized solution for a targeted cohort of a plan’s overall participant population, as well as address decumulation and financial wellness concerns.
According to a Cerulli report, fee sensitivity, concerns about performance and regulatory confusion are headwinds to environmental, social and governance (ESG) investment adoption in defined contribution (DC) plans.
A Vanguard study focusing on non-highly compensated employee (NHCE) behavior finds higher match thresholds are typically associated with lower plan participation and lower employee contribution rates.
In the first three quarters of 2018, only 2.2% of participant stopped contributing to their plans, ICI data shows.
With participants not panicking in Q4 2018 and the longer term trends resulting from automatic plan features, Fidelity Investments finds an overall improvement in average participant savings and account balances.
Notably, more than 60% of employers want to keep retirees in their plan, and they are looking to change their targeted communications to inspire action, Alight Solutions found.
Ten percent more employers than in 2016 that offer retirement programs are measuring the financial readiness of employees to retire, a survey found.
Leading distributors are consolidating assets, and new groups are growing in influence.
ICI finds the first quarter of the year tends to have lower percentages of DC plan participants with loans outstanding compared with later quarters.
“By providing a more diversified set of fixed income options, plan sponsors can help participants be better equipped to weather any challenging market environment, such as the rising rate environment we are in right now,” a Insights article from Cammack Retirement concludes.
They deferred 90% or more of the maximum that could be invested in a defined contribution (DC) plan in 2017.
PGIM suggests DC plan sponsors look to the investing approach of defined benefit (DB) plans, endowments, sovereign wealth funds, insurance company general accounts, sophisticated wealth management platforms and family offices. These institutional investors focus on solutions that are believed to offer a higher probability of meeting a desired outcome.
The ARA says e-delivery can lead to increased saving and investing.
The ERISA Advisory Council has provided the DOL with recommendations for design and delivery improvements with respect to the Summary Plan Description, the Annual Funding Notice and the Summary Annual Report.
According to Willis Towers Watson’s Thinking Ahead Institute’s 2018 Global Pension Assets Study, the institute sees shifts in investment models for retirement plans across the globe.